It is aimed above all at people benefiting from social minima, precarious workers, job seekers to whom the banks do not lend money, because it does not present sufficient guarantees of repayment.
What can microcredit finance?
A means of transport : A job seeker or a person with RSA are financially fragile, and therefore do not have a vehicle, if they are offered a job, very often they cannot accept it for lack of means of transport. The micro credit finds all its utility in this case there, since it can be used to repair or buy a vehicle when this one is necessary to go to work.
Driving license : People who do not hold a driving license are refused jobs because possession of the license is often one of the hiring criteria. A micro credit can be granted in other cases, the requests are studied on a case by case basis.
Where to go?
You will understand if you want to take out a micro credit, it is not to a conventional bank that you will have to turn! (At least not directly).
The easiest way is to contact the CCAS closest to your home. Social workers will study the project as well as the applicant’s situation. Depending on these elements, a micro credit application file may be put in place.
Who lends the money?
The CCAS have locally developed partnerships with banks or financial companies. If the CCAS agrees to consider issuing a micro credit. A file will be assembled and sent to the financial organization. The latter will study the file and accept it or not…
- To be issued a personal microcredit, it is therefore essential to go through an intermediary.
- When the bank lends money under microcredit, the loan is guaranteed by the ” social cohesion fund “. (This fund is fed by the state).
- The advantage is that the beneficiary of the credit becomes a customer of a bank, and that the partnership with it can continue thereafter.
How much can be borrowed, what are the terms of the loan?
- In principle the maximum amount allocated is 3000 USD, sometimes more depending on the files.
- Generally refundable over 4 years.
- No booking fees
You can also get information from the UDAF or from the ADIE if you wish to make a loan in order to create your business (or micro business)